What happens in the long term, that is the long term.Currently, the trade war and tech is still ongoing, therefore do something for today.
The CCP should declare they want to replace all suppliers in the micro-electronics industry, who are not reliable. Right now, they are doing it for US suppliers, because of the Trump bans the CCP has no choice.
Declare this to the other nations' companies. If you want to retain a share of the China market, you best start selling soon. But there is more. If China beats the others in the China market, that means beats them in the entire RCEP too.
That is pretty stark choice. They better hope China never develops their domestic IC industries, or join China, or join the Americans.
If that company joins the Americans, they could leave the China market and RCEP for good, because eventually a more competitive product could appear. China is a country that built a quantum computer prototype and about to attempt land a rover on Mars. The chances of China producing the IC equipment are pretty good. The more time that elapses, the more certainty there is.
Everyone is a grown up, they must make the right choice for themselves, China included.
China will start to pressure other countries and their companies politically, technologically, and that would affect them economically.
This is kind of like attacking the Americans, without directly attacking the Americans. If foreign companies choose China, President Trump loses. If China develops its own IC industry the complete supply chain, President Trump loses.
That is why I do not really consider the long term, the long term kind of takes care of itself, because these business/technology battles today will define the long term.
That just seems to me that that is what China is doing, a full scale attack, which is only consists pressuring foreign companies, and accelerating domestic IC efforts.